PURCHASE OF HOUSING AND DEVELOPMENT BOARD FLATS (Raising of eligibility income ceiling)

Dr Tan Cheng Bock asked the Minister for National Development whether the Housing and Development Board will consider raising the present eligibility income ceiling of $6,000 so that more Singaporeans can purchase HDB flats.

The Minister of State for National Development (Mr Lim Hng Kiang) (for the Minister for National Development): Mr Speaker, Sir, the income ceilings for purchase of HDB flats were last revised to $6,000 for nuclear families and $9,500 for extended families on 1st October, 1991. The Ministry of National Development has since reviewed these income ceilings taking wage increases over the past year into account. I am happy to inform the Member for Ayer Rajah that with effect from 1st December 1992 the income ceilings for purchase of HDB flats will be raised to $7,000 per month for nuclear families, and $11,000 per month for extended families.

With this revision, about 91% of households in Singapore will be eligible for public housing. The revision will be of particular benefit to about 12% of recently married couples in the 25-29 age group who have combined monthly incomes of between $6,000 and $7,000. This group is currently ineligible for public housing and could face difficulties buying private properties. With this change in the income ceiling, this group is now eligible for public housing.

Dr Kanwaljit Soin (Nominated Member): Sir, would the Minister consider the proposal that the first priority should be given to people with income ceiling of $6,000 as HDB flats are subsidised housing? Only when this demand has been satisfied and there is no waiting list for this group of people, then only those with a higher income should be considered because the latter group can buy resale HDB flats or they can buy direct from HUDC.

Mr Lim Hng Kiang: Sir, this is a fairly new principle and the Member is proposing that we accord priority based on income levels. This is something very new. We will of course study it but I do not think it is something that we would like to introduce for the time being.